LA Health Services Acts to Protect Patient Care Amid Significant Funding Reductions

LOS ANGELES — LA Health Services announces strategic service relocations to safeguard patient care as a direct response to the unprecedented budget crisis brought on by the Federal and CA State changes to healthcare funding. Changes to Medicaid and Medi-Cal are expected to reduce LA Health Services’ budget by over $700 million, by 2029. A loss of that magnitude is expected to result in difficult choices about the healthcare that LA Health Services will be able to provide to LA county communities.

While the LA Health Services has not yet been forced to close any health centers, it is making operational adjustments to help save money and protect patient care services. As part of these efforts, three community health centers will relocate their services to other LA Health Services health centers. 

Local health centers include: Torrance Health Center services which will relocate to Bellflower Health Center on June 1.

The relocations are the latest steps taken as part of the health system’s save our safety net or SOS initiative, which seeks to address financial challenges, optimize resources, maintain patient access, protect jobs, and reduce costs across the system. LA Health Services has already saved over $230 million by reducing reliance on registry and contract staff, managing overtime more tightly, implementing a hiring freeze, standardizing labs and supplies, reducing IT subscriptions and contracts, expanding telehealth and eVisits, and improving care coordination to reduce ER visits and hospitalizations.

The strategic relocations reflect the planning and difficult decisions LA Health Services is undertaking to maintain access and quality of care in the face of deep and ongoing budget reductions. While the health system continues doing everything possible to preserve services for LA County communities, continued funding reductions may eventually force additional operational changes. Without State or Federal intervention, federal Medicaid cuts along with State Medi-Cal cuts could significantly impact LA Health Services’ ability to maintain current service levels, preserve access to care, and support the safety-net system serving Los Angeles County’s most vulnerable residents.